South Africa’s Trade and Industry Minister Parks Tau has said the government has extended more than R2 billion in financial support to struggling sugar producer Tongaat Hulett to keep its operations running, African News Agency reported.
Responding to a question from Member of Parliament David Sikhosana of the Umkhonto weSizwe Party, Tau said the situation at the company remains serious and poses a risk to the wider sugar industry and rural economies.
He noted that the crisis could have a major impact on jobs and livelihoods, especially in KwaZulu-Natal and Mpumalanga, where the company plays a key role.
Tau said the Industrial Development Corporation (IDC) has been working with business rescue practitioners, company management, lenders, and other stakeholders since October 2022 to keep the company operational.
He said the IDC has provided over R2 billion in funding during the business rescue process to support ongoing operations, protect jobs, and sustain the sugar value chain.
However, efforts to revive the company have faced setbacks, including the failure to secure important sale agreements needed for recovery. Following this, business rescue practitioners moved to seek provisional liquidation.
Tau said the IDC has asked for this move to be withdrawn and has pushed for the company to remain under business rescue instead of liquidation.
He added that the IDC is working on long-term solutions to help the company recover and exit the rescue process within a reasonable time.
The minister said that if liquidation proceedings continue, the IDC will oppose them in court to prevent the company from shutting down.
He also stressed that the government is committed to protecting jobs, supporting farmers, and ensuring stability in the sugar sector.
Tau said the government will continue to monitor the situation closely and keep Parliament informed about further developments.
